Economic Policy News

Just how large has government grown over the past couple decades? To answer that, take a look at the increase in the amount the government spends per household in Heritage’s 2015 Federal Budget in Pictures. In 1962, the U.S. government spent about $12,000 of today’s dollars per American household; it now spends almost $29,000—more than…

Today the House Budget Committee released its fiscal year 2016 budget blueprint. Any good budget should balance within 10 years or less, without raising taxes above the average historical level (roughly 18 percent of gross domestic product (GDP)). In addition, Heritage policy experts previously established seven priorities for the congressional budget resolution. Let’s see how…

For Washington, it’s budget season. President Obama released his budget early last month, and this week it’s Congress’ turn to reveal its own budget resolutions. Government spending and debt has grown out of control: The current national debt exceeds $18.1 trillion and is only growing higher. It is Congress’ responsibility to address the national spending…

The U.S. has the highest corporate tax rate in the developed world, is the only major country to tax its businesses on income earned outside the country and delays the ability of businesses to deduct capital expenses for as long as 39 years. The monstrous complexity of the U.S. tax system has a disproportionately adverse…

It’s good to be No. 1. But as any former champ will tell you, you have to avoid becoming complacent if you want to stay ahead of the pack. First-place finishes aren’t guaranteed, just ask Hong Kong. Every year since 1995, the Heritage Foundation and The Wall Street Journal have measured the state of economic…

State Department spokeswoman Marie Harf recently blamed “lack of opportunity for jobs” as a root cause of terrorism in the Middle East. Her assertion, made in an interview Monday, that “we cannot kill our way out of this war” is unlikely to replace “I have not yet begun to fight” on lists of famous military…

In his surprise best seller Capital in the Twenty-First Century, Thomas Piketty argues that the wealth of rich owners of capital grows faster than the wages of workers in capitalist economies. Hence, inequality always increases unless destructive world wars or heavy-handed government regulation of the economy intervene. To remedy modern inequality, he proposes punitive taxes…

Ever heard of the Agriculture Risk Coverage program? How about the Price Loss Coverage program? You’re paying for them. Along with the Conservation Technical Assistance program, the Biological and Environmental Research program, and the USDA Catfish Inspection program. The list goes on, but why have I highlighted these particular entries? Because of the millions we…

The age old question in economics is this: how does a nation or state create economic growth and rising living standards for its citizens?  Once upon a time superstitious economists believed that growth was a function of the constellation of the stars. That kind of belief in astrology as a predictor of growth was no…

Suppose someone told you there were over two decades of economic data showing the secret of success for every nation in the world and that a Nobel laureate in economics inspired the methodology that was used to analyze that data. Would you sit up and listen? I hope so, because if you did, you would…

It is budget season in Washington and the debate is focused on who wants to increase spending and by how much. But the debate should be focused on how to reduce the size and scope of government. Across the country, Americans remain deeply concerned about growing deficits and debt. Washington’s obsession with increasing the size…